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Gold nears four-month highs after hawkish ECB boosts euro

Reuters  |  NEW YORK/LONDON 

By and Peter Hobson

NEW YORK/(Reuters) - prices on Thursday approached a four-month high set on the previous day after minutes of a European Central meeting showed a more aggressive tone and boosted the against the

The December meeting minutes said the central should revisit its policy message in early 2018 and gradually adjust its language to reflect improved growth prospects.

"The gained against the after the minutes from the ECB's December meeting showed a hawkish tone," said John Lawrence, a at Heraeus Metals in

Investors would probably take a policy message change as a sign that rate-setters may begin to wind down their 2.55-trillion-bond-buying programme.

A stronger potentially boosts demand for by making dollar-priced bullion cheaper for European investors.

The <.DXY> weakened more broadly after U.S. data showed a rise in jobless claims and a decrease in prices, making cheaper for other non-U.S. buyers.

Daniel Ghali, at in Toronto, said he had been expecting a lower

"The U.S. is set to tighten their quantitative easing, but other central banks around the world are going to play catch up," he said. "That should sap some strength out of the during the year."

Spot was up 0.5 percent at $1,322.74 an by 1:37 p.m. EST (1837 GMT) after touching $1,326.56 on Wednesday, the highest since Sept. 15.

U.S. futures for February delivery settled up $3.20, or 0.2 percent, at $1,322.50 per

The weaker has helped rally by more than $80 from its mid-December low, but it will struggle to rise much further in the short term, said Saxo

Several other factors were supporting prices, including a dip in equities following a spectacular rally, and a rise in industrial metals that will increase the cost of goods and services.

"People are starting to pick up on as a hedge," Ghali said. "There might be a growing community of people that are worried about an equity correction."Among other metals, spot silver was up 0.1 percent at $16.96 an from a two-week low of $16.86 on Wednesday.

Platinum was up 1.31 percent at $983.70 an after hitting $985.10, its highest since Sept. 15.

Palladium rose 0.2 percent to $1,084.60 an after touching a nine-day low of $1,075.50.

(Additional reporting by in Bengaluru; Editing by and Lisa Von Ahn)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 12 2018. 00:54 IST